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Oops, I was wrong! There are arguments that landlords already charge as much as they can, and as the supply of land can't be changed by LVT, they can't easily
by kspaans 11y ago
Oops, I was wrong! There are arguments that landlords already charge as much as they can, and as the supply of land can't be changed by LVT, they can't easily pass on the tax to their tenants. http://www.landvaluetax.org/frequently-asked-questions/why-lvt-cannot-be-passed-on.html http://www.landvaluetax.org/frequently-asked-questions/why-l...
- ams6110 11y agoThis is incorrect because demand for land is inelastic, or at least mostly so. Yes you can choose to rent in areas that are lower-value/more affordable but in many cases that's less practical than it's worth. For the most part you have to pay the market rate for where you want or need to be located. If we assume that all rents are at their market maximum (e.g. landlords are making minimal but still positive profit) then adding a tax to all will simply raise that equilibrium.